Mr Fluffy asbestos waste will not be allowed to blow around West Belconnen after it is dumped there following the demolition of contaminated homes, a committee has heard.

Minister for Territory and Municipal Services, Shane Rattenbury, has told a public hearing into the ACT Government's Mr Fluffy homes buy-back and demolition scheme that more than 300,000 cubic metres of contaminated waste will be taken to a tip at West Belconnen as part of the scheme.

The Parkwood Road facility is about one kilometre away from nearby homes.

Mr Rattenbury said asbestos from contaminated houses would arrive at the tip in a bonded state and then at the end of each day, they would will be covered with 30 centimetres of soil.

"There is clearly no intention for asbestos to be blowing around West Belconnen," Mr Rattenbury said.

"There are already established protocols for dealing with loose fill asbestos waste the area where there is work to be done is obviously a scale issue."

The Mr Fluffy crisis arose as a result of a company, known as Mr Fluffy, pumping the material into homes as insulation during the 1960s and 1970s.

A Commonwealth funded clean-up program in the 1980s and 1990s failed to remove all trace of the fibres.

The ACT Government has now accepted a $1 billion Commonwealth loan to start a five-year scheme to buyback and pull down 1,021 Canberra houses containing loose fill asbestos fibres, and then sell off the land.

Today's hearing is examining the proposed Appropriation Bill for Loose-fill Asbestos Insulation Eradication, that will establish the scheme.

Fluffy Owners and Residents' Action Group (FORAG) spokeswoman Brianna Heseltine has also appeared before the hearing.

Ms Heseltine told the committee she had uncovered a medical report from 20 years ago that predicted that more than one in 1,000 lifelong Mr Fluffy residents would die from mesothelioma or lung cancer.

"Two medical reports that I uncovered under Freedom of Information legislation with the Commonwealth Department of Prime Minister and Cabinet... they noted the serious health risks posed by the presence of Mr Fluffy asbestos insulation in homes to occupants, tradespeople and the community," she said.

"One report predicted that more than one in 1,000 lifetime residents of Mr Fluffy asbestos homes would die from mesothelioma or lung cancer, as a consequence of their exposure to asbestos in their homes."

Ms Heseltine said some residents had already been diagnosed with cancer and they believed it was linked to living in their family home.

"These cancers include cancers of the lung mesothelioma... bowel disease from the ingestion of fibres, kidney, breast, brain and prostate cancers," she said.

Ms Heseltine has calling for a full board of inquiry investigation into the Mr Fluffy asbestos issue.